Du Shuanghua Recap

Discussing Du Shuanghua and the sale of Rizhao Steel in 2010

Du Shuanghua, a Chinese entrepreneur, was the Chairman and CEO of Rizhao Steel. His company was one of the largest steel producers in China—likely because he had been investing in it since 1993. This year, Du Shuanghua’s company made headlines when it was announced that he would be selling his company to a state-owned enterprise for USD 1.2 billion.

Du Shuanghua’s decision to sell Rizhao Steel has raised questions from people worldwide about whether or not this is a good thing for both his company and his country.

The Sale of Rizhao Steel

Some people are questioning the sale of Rizhao Steel to a state-owned enterprise. They’re wondering what this means for the future of his company and his country. It’s important to note that Du Shuanghua isn’t selling all of Rizhao Steel, just a 51% share in the company. He is staying on as the company’s chairman and CEO. He’s not relinquishing control of his company or giving up power by selling any shares.

What does this mean for Du Shuanghua?

Du Shuanghua is a Chinese entrepreneur who has been living in the United States for the past two years. He left China because he didn’t want to be a part of the new political system, but his company remained home. Du Shuanghua’s decision to sell Rizhao Steel has raised questions from people worldwide about whether or not this is a good thing for both his company and his country. The sale only came to light in December 2017, and many unknowns surround it.

One question asked is what this means for Du Shuanghua’s future as an entrepreneur. It’s possible that his decision to sell Rizhao Steel could have been motivated by fear of the new policies put into place this year by President Xi Jinping, which he deems unfair. If so, then selling his company might be a smart move since it limits his risk of being blacklisted or having problems with the government going forward.

It’s also worth noting that China has created stricter policies for foreign investors in 2017, which could have played a role in Du Shuanghua’s decision to sell Rizhao Steel. One of these policies was banning private firms from investing in steel production and other heavy industries such as petrochemical and coal mining, limiting their access to cheap credit and increased competition from state-owned enterprises (SOEs). SOEs have had to improve to maintain their competitive advantage in these fields. Read more here: https://www.lanewaymagazine.com.au/rizhao-steel-exploring-du-shuanghuas-innovative-application-in-the-steel-industry/

Conclusion

Du Shuanghua, the chairman of Rizhao Steel, has been the face of the steel industry in China for the last decade. He has helped grow the firm from its humble beginnings in 2000 to one of the largest steel manufacturers in China.